Reg CC- cashiers check

Posted By: kelso

Reg CC- cashiers check - 07/22/11 05:46 PM

Will someone please clarify for me under Reg CC, if we have a new account with a deposit of a cashiers check for $10,000.00 and the check is out of state, can we hold the full $10,000.00 for 9 days, and use the safeguard exception of reasonable cause of uncollectability?

Thanks in advance for your help.
Posted By: Doug Hendrickson

Re: Reg CC- cashiers check - 07/22/11 05:54 PM

Not unless you have reasonable grounds for doubting the collectability of the check (out of state is not enough). You could check the recent SAs for counterfeit cashier's checks to see if the issuing bank has reported any such checks. The first $5,000 would have to be made available the next day and the remainder can be held (assuming your funds availability policy reserves that right).
Posted By: kelso

Re: Reg CC- cashiers check - 07/22/11 06:06 PM

So most of the time on a new account opening with a cashiers check you must give the $5,000.00 on the next business day?
Posted By: kelso

Re: Reg CC- cashiers check - 07/22/11 06:07 PM

So most of the time on a new account opening with a cashiers check you must give the $5,000.00 on the next business day?
Posted By: Bob The Banker

Re: Reg CC- cashiers check - 07/22/11 06:25 PM

First $200 will not apply in the case and...

If deposited in-person to the account of the payee -- First $5,000 available by the next business day. The rest (another $5,000 in your case) available by the 9th business day.

If not deopsited in-person to the account of the payee -- First $5,000 available by the 2nd business day. The rest (another $5,000 in your case) available by the 9th business day.

Posted By: kelso

Re: Reg CC- cashiers check - 07/22/11 06:43 PM

Thanks for your help.